G20 GDP returns to pre-pandemic level in Q1 2021: OECD

12 Jun '21

3 min read

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Gross domestic product (GDP) of the Group of 20 (G20) area returned to pre-pandemic level in the first quarter (Q1) of 2021, growing by 0.8 per cent compared with the fourth quarter of 2020, according to the Organisation for Economic Cooperation and Development (OECD), which said this figure, however, conceals large differences across countries.

Among the G20 economies, India, Turkey and China, whose GDP was already above pre-pandemic levels in the previous quarter, continued their recovery, by 2.1 per cent, 1.7 per cent and 0.6 per cent respectively in Q1 2021 (after 9.3 per cent, 1.7 per cent and 2.6 per cent in Q4 2020).

GDP in Australia, South Korea and Brazil also returned to pre-pandemic levels in Q1 2021, with GDP growing by 1.8 per cent, 1.7 per cent and 1.2 per cent respectively, OECD said on its website.

For the remaining G20 economies, GDP is still lagging behind pre-pandemic levels, with countries recording diverging developments in the first quarter of 2021. While GDP growth accelerated in the United States (to 1.6 per cent, after 1.1 per cent in Q4 2020) and Italy (to 0.1 per cent, following a contraction of 1.8 per cent), growth slowed in Indonesia (to 1.6 per cent, after 2.3 per cent), Canada (to 1.4 per cent, after 2.2 per cent), South Africa (to 1.1 per cent, after 1.4 per cent) and Mexico (to 0.8 per cent, after 3.2 per cent).

Growth even turned negative in Germany (minus 1.8 per cent, after 0.5 per cent growth), the United Kingdom (minus 1.5 per cent, after 1.3 per cent growth), Japan (minus 1 per cent, after 2.8 per cent growth) and Saudi Arabia (minus 0.1 per cent, after 2.5 per cent growth).

In France, GDP continued to contract for the second consecutive quarter, although at a slower pace (minus 0.1 per cent, after minus 1.5 per cent). Overall, the United Kingdom and Italy recorded the largest gaps to pre-pandemic GDP levels, at minus 8.7 per cent and minus 6.4 per cent respectively, but Germany, France, the euro area and the European Union also recorded gaps of more than 4 per cent.

Year-on-year GDP growth of the G20 area rebounded to 3.4 per cent in Q1 2021, following a contraction of 0.7 per cent in the previous quarter. Among G20 economies, China, which was affected by COVID-19 at an earlier stage than other countries, recorded the highest annual growth (18.3 per cent), while the United Kingdom recorded the largest annual fall (minus 6.1 per cent).

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